In my column in the Rapid City Journal today, I share some of my observations about TIFs (Tax Increment Financing) as I continue my personal quest to get a handle on this complex issue.
I had hoped to talk to and include comments from city council members on both sides of this issue, but was not able to match orbits with any of the "pro-TIF" side in time for the column.. Actually, I don't think any aldermen are "anti-TIF" as some have been portrayed; just that some want to use them more frequently than others who think requirements and approvals need to be tightened.
One of the most interesting things I found? While the Growth Management Office wasn't able to provide me with enough data to determine the TIF application approval rate,
the information did reveal that the number of TIFs approved has gone up dramatically in the past six years.
From 1983 to 1989, 12 TIFs were approved. During the 1990s, 11 TIFs were approved. But since 2001, 29 TIFs have been approved with an assessed base valuation of $264.5 million. That’s a 142 percent increase in the number of TIFs approved in 40 percent less time.
I think anytime you see an increase of that magnitude of anything, it's worth taking a look at it to ensure nothing is amiss.
I did get to talk to Councilman Bill Okrepkie yesterday (too late for the column deadline). We had a long chat in which he told me he not only believes TIFs are not being used too much, but he believes Rapid City badly needs a long-term strategic vision and plan for future development.
My hope is the TIF Revision Committee recently appointed by Mayor Alan Hanks will take an honest, in-depth look at whether the definition of "blighted" real estate is being stretched, and at TIFs in general.
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